The market value of Bishops Stortford leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate significantly once the remaining term is less than 80 years
Leasehold premises in Bishops Stortford with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you enhanced control over the value of your Bishops Stortford leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last Christmas Ibrahim, came perilously near to the 80-year threshold with the lease on his purpose- built apartment in Bishops Stortford. In buying his property two decades ago, the unexpired term was of no concern. by good luck, he recognised he needed to take steps soon on a lease extension. Ibrahim arranged for a lease extension at the eleventh hour last January. Ibrahim and the freeholder via the managing agents ultimately agreed on the final figure of £5,000 . If the lease had dipped to less than eighty years, the price would have increased by a minimum £925.
In 2010 we were approached by Mr and Mrs. P Edwards who, having took over the lease of a one bedroom flat in Bishops Stortford in July 2007. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by 90 years. Similar homes in Bishops Stortford with 100 year plus lease were valued about £220,400. The average ground rent payable was £45 collected per annum. The lease ended in 2089. Given that there were 64 years outstanding we estimated the premium to the freeholder for the lease extension to be within £15,200 and £17,600 not including professional charges.
In 2014 we were approached by Mr and Mrs. S Williams who, having completed a purpose-built apartment in Bishops Stortford in October 1999. We are asked if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Identical flats in Bishops Stortford with an extended lease were valued around £270,000. The average amount of ground rent was £55 billed annually. The lease came to a finish on 28 October 2099. Given that there were 74 years left we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.